— The State of California will consider issuing IOUs rather than writing checks that are almost guaranteed to bounce. California’s $42 billion budget stalemate is forcing the state controller to put off paying some bills for 30 days, like income tax refunds and college grants.

California is not yet issuing IOUs, but that could become necessary in March or April.

Right now there is simply not enough money to pay all the bills. They are electing not to pay the bills they do not have to, at least for the month of February.